(Answered) Question two investments offer a series of cash payments

Accounting

Question: Two investments offer a series of cash payments over the next four years, as shown in the following table.

Investment Year 1 Year 2 Year 3 Year 4

1 $100 $200 $300 $400

2 $250 $250 $250 $250

a. What is the total amount of money paid by each investment over the four years?

b. From a time value of money perspective, which of these investments is more attractive?

c. Can you think of a reason why investors might prefer Investment 1?

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